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Frustrated GM investors ask what more Mary Barra can do

DETROIT — General Motors Co Chief Executive Mary Barra has transformed the No. 1 U.S. automaker in her almost five years in charge, but that is still not enough to satisfy investors. Ahead of third-quarter results due on Oct. 31, GM shares are trading about 6 percent below the $33 per share price at which they launched in 2010 in a post-bankruptcy initial public offering. The Detroit carmaker's stock is down 22 percent since Barra took over in January 2014. After hitting an all-time high of $46.48 on Oct. 24, 2017, the shares have declined 33 percent. In the same period, the Standard & Poor's 500 index has climbed 7.8 percent. Several shareholders contacted by Reuters said GM could face a third major action by activist shareholders in less than four years if the share price does not improve. "I've been expecting it," said John Levin, chairman of Levin Capital Strategies. "It just seems a tempting morsel to somebody." Levin's firm owns more than seven million GM shares. Barra has guided the company through the settlement of a federal criminal probe of a mishandled safety recall, sold off money-losing European operations, and returned $25 billion to shareholders through dividends and stock buybacks from 2012 through 2017. GM declined to comment for this story, but the company's executives privately express frustration with the market's reluctance to see it as anything more than a manufacturer tied mainly to auto market sales cycles. GM's profitable North American truck and SUV business and its money-making China operations are valued at just $14 billion, excluding the value of GM's stake in its $14.6 billion Cruise automated vehicle business and its cash reserves from its $44 billion market capitalization. The recent slump in the Chinese market, GM's largest, and plateauing U.S. demand are ratcheting up the pressure. GM is one of the few global automakers without a founding family or a government to serve as a bulwark against corporate raiders. In 2015, a group led by investor Harry Wilson pressed GM to launch a $5 billion share buyback, and commit to what is now an $18 billion ceiling on the level of cash the company would hold. In 2017, GM fended off a call by hedge fund manager David Einhorn to split its common stock shares into two classes. Einhorn, whose firm still owned more than 21 million shares at the end of June, declined to comment about GM's stock price. Other investors said there were no clear alternatives to Barra's approach.

Cadillac CTS Vsport laps the N"urburgring in 8:14.10 [w/video]

You don't have to be German to test your car at the Nürburging. You just have to be serious about beating the Germans on their own home turf. That's why Nissan tests its GT-R at the Nordschleife to challenge the Porsche 911, and why Cadillac - which is no less serious about putting up a fight to German performance sedans - has returned to the 'Ring once again with its latest.
This time it's the turn of the new CTS Vsport, the sportier version of Cadillac's new mid-range sedan that aims to bridge the gap until the arrival of the next CTS-V. So how'd it fare? At the end of what we're sure was an exhaustive test session, the new CTS Vsport clocked a time of 8:14.10.
To put that into context, General Motors points out that the time places the new sedan six seconds ahead of the first-gen CTS-V, whose 400-horsepower V8 engine was actually less potent than the Vsport's new 410hp 3.6-liter twin-turbo V6. That's still a good fifteen seconds slower than the outgoing CTS-V that clocked a 7:59 in 2009 with its 556hp supercharged V8, but only a second behind the E60-generation BMW M5 with its high-revving 500hp V10.

Cadillac Elmiraj Concept slinks in Leno's Garage

Jay Leno's Garage has moved to Pebble Beach for the week. This time around, the affable comedian is taking a look at the Cadillac Elmiraj Concept that debuted during the Monterey car week, and is talking to General Motors vice president of global design, Ed Welburn.
There's plenty of reminiscing about what concept cars were like when these two were kids, before a fairly deep dive into the striking Elmiraj Concept itself. Welburn shares a few anecdotes about the design process behind the two-door concept, including how his designers changed his mind on the grille design.
After bringing up the Cimarron, Leno makes a solid point that the Elmiraj would be a solid production car that could even spawn a four-door variant. We couldn't agree more. Take a look below for the full video from Jay Leno's Garage.